<p>NJ…I think you’re acct is wrong.</p>
<p>My son had to declare his housing scholarship.</p>
<p>Here is it from the IRS…</p>
<p>Taxable Scholarships and Fellowships</p>
<p>If you received a scholarship or fellowship, all or part of it may be taxable, even if you did not receive a Form W-2. Generally, the entire amount is taxable if you are not a candidate for a degree.</p>
<p>If you are a candidate for a degree, you generally can exclude from income that part of the grant used for:</p>
<p>Tuition and fees required for enrollment or attendance, or
Fees, books, supplies, and equipment required for your courses.
You cannot exclude from income any part of the grant used for other purposes, such as room and board.</p>
<p>A scholarship generally is an amount paid for the benefit of a student at an educational institution to aid in the pursuit of studies. The student may be in either a graduate or an undergraduate program.</p>
<p>A fellowship grant generally is an amount paid for the benefit of an individual to aid in the pursuit of study or research.</p>
<p>Example 1
Tammy Graves receives a $6,000 fellowship grant that is not designated for any specific use. Tammy is a degree candidate. She spends $5,500 for tuition and $500 for her personal expenses. Tammy is required to include $500 in income.</p>
<p>Example 2
Ursula Harris, a degree candidate, receives a $2,000 scholarship, with $1,000 specifically designated for tuition and $1,000 specifically designated for living expenses. Her tuition is $1,600. She may exclude $1,000 from income, but the other $1,000 designated for living expenses is taxable and must be included in income.</p>
<p>scroll down about halfway…</p>
<p><a href=“http://www.irs.gov/individuals/students/article/0,,id=96674,00.html[/url]”>http://www.irs.gov/individuals/students/article/0,,id=96674,00.html</a></p>
<p>It looks like monies covering housing and meals are taxed…but maybe I’m not reading it right.</p>